The government has ordered a fresh investigation into the collapsed Metropolitan National Savings and Credit Co-operative Society (Metropolitan Sacco), nearly two years after thousands of members were locked out of their savings.
In a Gazette Notice, Commissioner for Co-operative Development David Obonyo directed an inquiry into the Sacco’s by-laws, financial position, governance structures and overall sustainability.
The investigation will be conducted under Sections 58 and 73 of the Co-operative Societies Act, with Principal Cooperative Officer Habil Olembo and Assistant Director of Cooperative Audit Silars Okoth Dede appointed to lead the probe.
The officials have been given 10 days to examine the operations of the Sacco, including its financial health, management decisions and circumstances that contributed to its collapse.
The inquiry comes amid growing concerns over the financial status of the Sacco, with recent recovery efforts revealing deeper challenges.
Members recently approved a forensic audit that uncovered a Sh15 billion gap in the Sacco’s loan book, raising questions over lending practices, loan recovery mechanisms and the accuracy of financial reporting.
The findings point to a larger financial shortfall than previously disclosed, intensifying efforts to trace members’ deposits and establish how the funds were managed.
Metropolitan Sacco was once among Kenya’s largest deposit-taking Saccos before experiencing financial difficulties that left thousands of members unable to access their savings.
The collapse has renewed concerns over governance, accountability and regulatory oversight within the co-operative sector, with members calling for stronger measures to safeguard savings and prevent similar failures.
The government said the outcome of the inquiry could inform recovery measures and possible sanctions against individuals found responsible for mismanagement or breaches of the law.
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